NEWS

Major Reduction In Fuel And LPG Prices

The Minister for Industry, Trade and Tourism Hon. Faiyaz Siddiq Koya today announced major reductions in prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products, based on the latest
14 Apr 2016 15:54
Major Reduction In Fuel And LPG Prices
Reduction In Fuel Prices

The Minister for Industry, Trade and Tourism Hon. Faiyaz Siddiq Koya today announced major reductions in prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of prices by the Fiji Commerce Commission.

 

The international prices for fuel have fallen in the last three months contributing to the price reductions announced today.

 

The reduction in fuel and LPG prices, which will come into effect on 15 April 2016, are as follows:

 

  • Motor Spirit from $1.90  to $1.67 per litre, a decrease of 23 cents per litre or 12.11%;
  • Premix from $1.78  to $1.52 per litre, a decrease of 26 cents per litre or 14.61 %;
  • Kerosene from $1.35 per litre to $1.00 per litre, a decrease of 35 cents per litre or 25.93 %;
  • Diesel from $1.50 to $1.24 per litre, a decrease of 26 cents per litre or 17.33%.
  • 4.5 KG cylinder from $12.52 to $11.51, a decrease of $1.01 or 8.07%;
  • 12 KG cylinder from $33.38 to $30.70, a decrease of $2.68 or 8.03%;
  • Bulk from $2.36 a KG to $2.15 a KG, a decrease of 19 cents or 8.05% ; and
  • Auto Gas per litre from $1.58 to $1.45, a decrease of 13 cents or 8.23%.

 

Further to the fuel price reductions, the Fiji Commerce Commission had undertaken a review of the fuel retail mark-up for fuel retailers.

 

The Minister further highlighted that based on the submissions by Fiji Fuel Retailers Associations and thorough assessments by the Commission the fuel retail mark-up has been changed from percentage mark-up to fixed cents per litre.

 

This mark-up will be applied to all products (Diesel, Unleaded, Kerosene and Premix). The new mark-up fixed at 10 cents per litre for Unleaded and Premix, whilst for Kerosene and Diesel the mark-up has been fixed at 9.5 cents per litre.

 

The Hon. Minister added that the change in the methodology of mark-up application ensures that the retailer’s margin remains constant irrespective of the movement of international price. This reduces the risk of losses to the retailers due to fluctuation world market prices. This change in methodology provides certainty for traders and a solid platform for future investment decisions.

 

Hon. Koya stated that the reduction of prices of fuel and LPG could not be more timely, as Fiji is in the rebuild phase, following Cyclone Winston. This reduction will provide a relief to all Fijians.

 

The Hon. Minister reminded all consumers that whilst we enjoy the reduction in fuel prices we need to use fuel wisely.  Fuel is a significant contributor to carbon emission and climate change. We have experienced the impact of climate change with devastating cyclone, such as Winston. Therefore, we need to be responsible in our use of fuel.

 

The Hon. Minister stated that whilst Fiji is a price taker on commodities such as fuel and LPG products in the international market, progressive policies like the VAT reduction announced in the 2016 Budget, enables the Government to ease the burden on Fijian consumers, leaving them with more disposable income and savings.

 

The Minister has cautioned the traders to comply with the new prices to avoid the imposition of a spot fine of up to $3,000.00 per offence to a body corporate and $1,000.00 per offence for natural person and entities under the Commerce Commission Decree 2010.



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